EBK ECONOMICS FOR TODAY
9th Edition
ISBN: 8220101414250
Author: Tucker
Publisher: Cengage Learning US
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Question
Chapter 6, Problem 3SQ
To determine
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Students have asked these similar questions
According to the law of diminishing marginal utility, marginal utility of a good declines as more of it is
consumed in a given time
period. According to this law, which of the following statement is true?
a. The more I go to school, the more I want to do something else
b. Since we need gasoline more than we need paper, gasoline is more valuable
c. Peas give me no satisfaction, so I won't buy any
d. The more coffee I drink, the more I want to drink
According to the law of diminishing marginal utility:
a. as you consume less of something, your total utility will decrease.
b. as you consume less of something, your marginal utility from consuming that good will increase
c. you should never consume more of something if your marginal utility is decreasing.
d. If your total utility is increasing as you consume more of something, then your marginal utility must be increasing as well.
Bob consumes food and housing. Suppose his marginal utility from an additional unit of food is 20 and his marginal utility from an additional unit of housing is 180.
Furthermore, suppose the price of a unit of food is $1.00 and the price of a unit of housing is $2.00. Can Bob increase his utility without changing his total expenditures
on food and housing?
Holding expenditures constant,
A. Bob can increase utility by spending more on food and less on housing.
B. Bob can increase utility by spending more on food and the same amount on housing.
C. Bob can increase utility by spending less on food and more on housing.
D. Bob cannot increase his utility.
E. Bob can increase utility by spending more on food and more on housing.
Chapter 6 Solutions
EBK ECONOMICS FOR TODAY
Ch. 6.1 - Prob. 1YTECh. 6.1 - Prob. 2YTECh. 6.2 - Prob. 1YTECh. 6.A - Prob. 1SQPCh. 6.A - Prob. 2SQPCh. 6.A - Prob. 3SQPCh. 6.A - Prob. 1SQCh. 6.A - Prob. 2SQCh. 6.A - Prob. 3SQCh. 6.A - Prob. 4SQ
Ch. 6.A - Prob. 5SQCh. 6.A - Prob. 6SQCh. 6.A - Prob. 7SQCh. 6.A - Prob. 8SQCh. 6.A - Prob. 9SQCh. 6.A - Prob. 10SQCh. 6.A - Prob. 11SQCh. 6.A - Prob. 12SQCh. 6.A - Prob. 13SQCh. 6.A - Prob. 14SQCh. 6.A - Prob. 15SQCh. 6 - Prob. 1SQPCh. 6 - Prob. 2SQPCh. 6 - Prob. 3SQPCh. 6 - Prob. 4SQPCh. 6 - Prob. 5SQPCh. 6 - Prob. 6SQPCh. 6 - Prob. 7SQPCh. 6 - Prob. 8SQPCh. 6 - Prob. 9SQPCh. 6 - Prob. 10SQPCh. 6 - Prob. 1SQCh. 6 - Prob. 2SQCh. 6 - Prob. 3SQCh. 6 - Prob. 4SQCh. 6 - Prob. 5SQCh. 6 - Prob. 6SQCh. 6 - Prob. 7SQCh. 6 - Prob. 8SQCh. 6 - Prob. 9SQCh. 6 - Prob. 10SQCh. 6 - Prob. 11SQCh. 6 - Prob. 12SQCh. 6 - Prob. 13SQCh. 6 - Prob. 14SQCh. 6 - Prob. 15SQCh. 6 - Prob. 16SQCh. 6 - Prob. 17SQCh. 6 - Prob. 18SQCh. 6 - Prob. 19SQCh. 6 - Prob. 20SQ
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- Q. Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units. a. Is Bridget making the utility-maximizing choice? Why or Why not? b. If not, what should she do instead? Why? Please provide the correct answer. Thank you!arrow_forwardIf a consumer's marginal utility was 10 utils per unit of meat and 5 utils per unit of potatoes: a. the consumer should purchase less potatoes and more meat to maximize his satisfaction. b. the consumer would be in equilibrium if the per-unit price of meat was twice the price of potatoes. c. the consumer would be in equilibrium if the price per unit of meat was half the price of potatoes. d. the consumer's total utility could be increased by consuming more potatoes and less meat until the marginal utilities of the two goods were equal.arrow_forwardWhich of the following choices best explains how marginal utility causes the average person to eat more food at a buffet than at an a la carte menu where you pay for each item that you want? A. Spending money on food has a very low marginal utility, so customers at a la carte restaurants will generally only buy the cheapest options (which taste worse), causing them to eat less. B. A consumer will eat until the next serving's benefit is less than its cost. At an a la carte restaurant, a consumer will stop ordering even when the marginal utility of the next serving is positive. At an all-you- can-eat buffet, the next serving always costs zero. Therefore, a consumer won't stop until the next bite provides negative marginal utility. C. People go to buffets because they want to eat more. Thus, the customers at buffets are more inclined to eat more food. Marginal utility does not play a factor in how much they eat. incorrect D. Because consumers choose their own portion sizes at a buffet,…arrow_forward
- Timothy is trying to achieve the optimum combination of bags of peanuts and bags of popcorn he should buy with his $20 budget. The price of peanuts is $5 per bag and the price of popcorn is $4 per bag. If Timothy’s marginal utility from consuming his last bag of peanuts is 20 utils and his marginal utility from consuming his last bag of popcorn is 12 utils, Timothy should? A. consume more bags of popcorn and less of peanuts. B. consume more bags of peanuts and less of popcorn. C. not change his consumption. He has already achieved the consumer optimum. D. consume fewer bags of peanuts and popcorn. E. consume more bags of popcorn and peanuts. Please type out the correct answer ASAP within 40 50 minutes, with proper explanation of the each option given. Will give upvote only for the correct answer.thank you.arrow_forward1. What is the Total Utility of the second unit? 2. What is the Marginal utility of the third, fourth and the fifth unit? 3. Explain the relationship between Total Utility and Marginal Utility. 4. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? 5. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not. 6. In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as 7 Eleven, Kwik Shop, and Circle K), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores?arrow_forward1. What is the Total Utility of the second unit? 2. What is the Marginal utility of the third, fourth and the fifth unit? 3. Explain the relationship between Total Utility and Marginal Utility. 4. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? 5. “It is possible that a rational consumer will not purchase any units of the product represented by these data.” Do you agree? Explain why or why not. 6. In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as 7 Eleven, Kwik Shop, and Circle K), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores? ****FIRST 3 SUB-PARTS ANSWERED ALREADY ONLY NEED LAST 3****arrow_forward
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